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Denver Family Practice

For Sale.
Solo
Family medicine practice located in the Denver metro area. This busy practice is
in a modern professional office building and has 4 exam rooms, 1 treatment
rooms, 2 consultation rooms, lab area, nurse’s station, ample parking, and easy
street access. Practice has an excellent payer mix. The practice is on track for
about $840K gross collections in 2018 with the doctor seeing patients about 33
hours per week and about 80 patient encounters per week. The owner doctor
projected 2018 take home income is about $410K.

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Medical Practice Brokers is growing and expanding our presence throughout the
nation.

Upcoming Seminar

Designed exclusively for Medical Practice Owners, this seminar shows you what it takes to sell your practice for the best price.

What is your practice worth?

Find out now -- Call today!

Of course the question has crossed
your mind, "If you were to sell your practice today how much
would it bring?" Understandably, that's not a simple
question in today's dynamic market. Every practice is
unique. Pricing your practice is a tricky matter. If you ask
too much, buyers will look elsewhere. Yet, if your price is
too low, you'll cheat yourself out of thousands of dollars.

Don't be burned by outdated pricing rules!

Using any one formula or rule to determine practice value is a setting you up
for a potentially costly mistake. There are numerous factors that influence
practice value: equipment, goodwill, profitability, financial history, staffing,
buyer debt service, etc. The old rule of thumb "a practice is worth one year's
gross" simply isn't true any more. Where does your practice stand? If real
estate is involved then you have to determine if the practice income can support
the fair market value of the real estate. Will you have to delay
retirement another 5-10 years?

Sadly, some doctors think their practice is worth much
more than the practice will actually sell for in today's
market. Unfortunately, some have based their retirement
plans on an over inflated value only to discover they cannot
retire as they had planned. This is particularly sad when
health reasons or "burn out" don't allow the doctor the
extra years needed to attain their retirement goal. Even
CPAs sometimes miscalculate medical practice values by as
much as 100% by using IRS formulas that have no basis in
what buyers and lenders will pay for a practice. One might
say, "It probably makes as much sense to hire a
general-purpose CPA to appraise your house as it does a
medical practice, since he/she probably has never marketed
or sold either." Is your CPA is a specialist in medical
practice sales? You need to know!

Can you see the forest for the trees?

Sometimes a person is so close to
something it is difficult to form an objective opinion.
Medical practices are no exception. Unless you have had
exposure to numerous practice financials, sales data, and
industry financing trends, it is unlikely a person will be
able to determine a fair market value in today's practice
marketplace. You might have to spend hundreds of hours doing
research just to figure out what factors will make a
significance difference to buyers and their lenders. Did you
adjust the sales price to compensate for the doctor's spouse
working part-time for free? Did you adjust to normalize for
the amount of vacation and hours worked? Are the practice
financials sufficiently documented to attract a buyer? Do
you know if the practice income after debt service will
support the value of the real estate? Do you know what "add
backs" can be used in your situation to maximize the sales
price? How much will a buyer pay for "potential"? Does this
practice warrant a top dollar price, or only a middle of the
road price, or something less? Can a buyer get financing to
buy your practice?

Pick the valuation service you need

We offer a range of valuation
services to allow you to choose the most cost effective
solution tailored to your needs and budget. The difference
between these services is related to the time involved, the
extent of the investigation into the business and report
detail.

2nd Opinion Service

The 2nd Opinion Service
($4,450) is for someone that wants an economical
“ballpark” practice value. This report reflects the
appraiser’s limited opinion as to practice value. It is
considered a preliminary report under the Standards of the
Institute of Business Appraisers, by which the analysis and
investigation is intentionally limited as a cost and time
saving measure. This service includes a 12-15 page written
opinion of what the practice would likely sell for on
today's market, and a description of selected practice
characteristics and where the practice is over performing or
under performing. We use the last 2-3 years of business
financial data and information from proprietary
questionnaire, and at least two valuation approaches to determine Value. The 2nd Opinion Service is ideal for

smaller practices where
more expensive solutions are not cost effective

s

ale to an associate already familiar with
the practice

r

etirement planning or insurance purposes

p

eriodically tracking practice value

f

or a buyer/seller simply looking for a third
party opinion or sanity check and does not require the
greater accuracy provided by the other services

fo

r internal planning (e.g., retirement or
estate planning) where you just need to keep a pulse on
practice value

Practice Opinion Letter

The Practice Opinion Letter
($5,995) is for someone that wants a more detailed
analysis and conclusion, but desires to reduce the cost of
valuation by using a short-form report. This 30-35 page
report uses the last 5 years of business data and
information from a proprietary questionnaire, and uses at
least three
valuation approaches (Market, Income, and Asset Approaches)
to determine value. The normal standard of value used is
Fair Market Value, but may be requested for other standards
of value that might be appropriate for divorce, oppressed
shareholder, or strategic investor purposes. The Practice
Opinion Letter is ideal for

those looking to sell or
buy a practice where they are not currently an associate

those who need a more detailed analysis for
decision making

those who might want review and input from an
advisor or CPA

non-contentious divorce or partnership situations

Comprehensive Practice Value

The Comprehensive Practice Value
($7,000 - $ 12,000) is for someone that
wants a long-form report with detail sufficient to permit
the reader to reasonably replicate the appraiser's
procedures. This 60 – 100 page report is based on
essentially the same analysis as that used in the Practice
Opinion Letter, but the report fully documents the analysis
and intermediate steps, and rationale behind decisions.
Additionally, this service usually includes a personal site
visit and owner/management interview process, whereas the
2nd Opinion Service and Practice Opinion Letter do not
include a site visit in the advertised price. For those
wanting a Comprehensive Practice Value we prefer to discuss
the situation with both you and your attorney/CPA to ensure
the report will meet your needs. In general, we prefer not
to take engagements where we will be required to testify in
court. If you anticipate this need, contact us to discuss
our availability and expert witness support fees. The
Comprehensive Practice Value is recommended for

those needing the replicable
detail not provided by the other services

Hourly Consulting

We also offer Hourly Consulting for
those when our standard services or reports don’t fit your
situation; or if you don’t require a formal report.
Our hourly consulting rate is $325/hour.

Call
for more information about our litigation support and expert
witness on-stand testimony rates. If
you are on a tight budget, want an analysis and informal
verbal or email conclusion, are just looking for help in
identifying 'red flags' in the practice, or have specific
questions that you want answered, the hourly consulting
model is a good fit.

Valuation Critique

Valuation Critique ($1,995):
We will review and critique another written valuation
report. Perfect if you have been given a valuation report
and want a second opinion. This is not an independent
opinion of value, but rather a sanity check on what has been
done before. We'll tell you if we find the conclusions and
methods cited in the report to be reasonable or off track.
Is the valuation credible? Did they review the right
information from which to draw their conclusions? Why
wonder? Get a second opinion today!